Press Release

Rent-A-Center Concludes Review of Strategic and Financial Alternatives, Announces New 2018 Guidance Based on Materially Improved Financial Performance and Provides Business Updates

PLANO, Texas--(BUSINESS WIRE)--Jun. 10, 2018--
Rent-A-Center, Inc. (NASDAQ/NGS:RCII) (“Rent-A-Center” or the
“Company”), a leader in the rent-to-own industry, today announced that
its Board of Directors (the “Board”) has concluded its review of
strategic and financial alternativesto enhance stockholder value.

The Board, in consultation with its financial and legal advisors,
conducted a comprehensive review of strategic and financial
alternatives, including a possible sale of the Company, and unanimously
determined that the continued execution of Rent-A-Center’s previously
announced strategic plan is in the best interest of the Company and its
stockholders. Through its robust review process, the Board focused on
evaluating opportunities to maximize stockholder value. The Board, which
includes a representative of Rent-A-Center’s largest stockholder,
explored a range of potential transactions before determining that the
continued execution of the Company's strategic plan, which the Company
has been successfully pursuing since the appointment of Mitchell E.
Fadel as its Chief Executive Officer at the beginning of the year,
provides the best opportunity to enhance long-term stockholder value.
The Board was prepared to pursue a sale of the Company if it concluded
that such a transaction would both maximize stockholder value and
provide certainty of closing. While the Company actively explored a
possible sale, the Board unanimously determined that it did not receive
any acquisition proposals meeting either of its objectives for a sale of
the Company.

“Our Board conducted a thorough review of alternatives for our business,
and unanimously determined that the execution of our strategic plan
remains the best opportunity to deliver value to our stockholders
compared to the alternatives available to us,” said J.V. Lentell,
Chairman of the Rent-A-Center Board of Directors. “As demonstrated by
our updated financial outlook and key operating metrics for April and
May, the Company’s strategic plan is already delivering substantial
results and Rent-A-Center is well-positioned to generate value for all
stockholders.”

“While today’s announcement represents the conclusion of our formal
strategic and financial alternatives review process, we will continue to
regularly review opportunities to drive value on behalf of our
stockholders,” said Mitch Fadel, Chief Executive Officer
of Rent-A-Center. “Through the execution of our strategic plan, we
continue to make significant progress to strengthen our financial
profile and improve our results. Our cost reduction initiatives are
significantly ahead of schedule and we expect to generate over $100
million in annual run-rate savings and realize approximately $70 million
in savings in 2018. This compares to our previous expectations of $65
million to $85 million in annual savings and $43 million to $57 million
realized in 2018 announced in February, and $75 million to $95 million
in annual savings and $50 to $63 million realized in 2018 which was
updated in April. Our new US pricing model is enabling us to increase
loyalty amongst a larger customer base, growing our customer retention
and helping customers achieve their goal of ownership faster than
before. We are confident that we have the right plan in place to drive
profitability while maintaining lower capital costs, allowing us to
create enhanced value for all Rent-A-Center stockholders.”

In connection with the Board’s determination to continue executing the
Company’s strategic plan, the results of which are exceeding
management’s expectations, Rent-A-Center today provided the following
updated guidance for 2018 and preliminary key operating metrics for its
Core U.S. and Acceptance NOW (“ANow”) businesses for April and May 2018.

Q2 Guidance

Consolidated Revenues of $640 to $660 million

Core U.S. Revenues of $450 to $460 million

Acceptance NOW Revenues of $170 to $180 million

Adjusted EBITDA in the range of $40 to $50 million

Non-GAAP diluted earnings per share in the range of $0.20 to $0.30
cents

Free Cash Flow of $30 to $40 million

2018 Guidance

Consolidated Revenues of $2.640 to $2.690 billion

Core U.S. Revenues of $1.835 to $1.865 billion

Acceptance NOW Revenues of $730 to $750 million

Adjusted EBITDA in the range of $160 to $180 million

Non-GAAP diluted earnings per share in the range of $0.65 to $0.90
cents

Free Cash Flow of $210 to $230 million (compared to at least $130
million announced in February and at least $170 million announced in
April)

Operational performance continues to exceed the Company’s internal
expectations in both the Core and ANow businesses primarily driven by
strong portfolio performance. Monthly Core same store sales have
continued to improve sequentially during the second quarter. Positive
Core customer growth was generated in April and May for the first time
in several years and customer retention is significantly higher than
historical averages driven by pricing changes, the 180 day same as cash
offering, and enhanced marketing efforts. The value proposition changes
recently implemented in most of the Company’s ANow locations have
resulted in double digit increases in demand, and Rent-A-Center is
committed to investing in ANow’s unmanned platform to drive additional
growth.

Core U.S.

April Same Store Sales: 3.3 percent

May Same Store Sales: 3.6 percent

ANow

April Same Store Sales: 2.3 percent

May Same Store Sales: 2.5 percent

Guidance PolicyThe Company
provides selected guidance and will only provide updates if there is a
material change versus the original guidance.

Non-GAAP ReconciliationThis press release refers to the
non-GAAP measures EBITDA (earnings before interest, taxes, depreciation
and amortization), Net Debt (total debt less cash over $25 million),
Non-GAAP diluted earnings per share (net earnings excluding special
items divided by diluted weighted average shares) and Free Cash Flow
(operating cash flow less investing activities) when addressing guidance
for future periods. Management believes that the presentation of these
non-GAAP financial measures in this press release is useful to investors
in their analysis of the Company’s projected performance in future
periods. The Company has not quantitatively reconciled differences
between EBITDA, Net Debt, Non-GAAP diluted earnings per share or Free
Cash Flow and their corresponding GAAP measures for such future periods
due to the inherent uncertainty regarding variables affecting the
comparison of these measures.

In light of the updated financial guidance and financial and operational
results information reported by the Company today, the Board determined
it was appropriate at this time to suspend its current trading blackout
period applicable to the Company’s directors, executive officers,
divisional vice presidents, senior vice presidents, vice presidents, and
certain other designated home office co-workers.

About Rent-A-Center, Inc.

A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc.,
is focused on improving the quality of life for its customers by
providing them the opportunity to obtain ownership of high-quality,
durable products such as consumer electronics, appliances, computers,
furniture and accessories, under flexible rental purchase agreements
with no long-term obligation. The Company owns and operates
approximately 2,400 stores in the United States, Mexico, Canada and
Puerto Rico, and approximately 1,250 Acceptance Now kiosk locations in
the United States and Puerto Rico. Rent-A-Center Franchising
International, Inc., a wholly owned subsidiary of the Company, is a
national franchiser of approximately 250 rent-to-own stores operating
under the trade names of “Rent-A-Center,” “ColorTyme,” and “RimTyme.”
For additional information about the Company, please visit our website
at www.rentacenter.com.

Forward-Looking Statements

This press release and the guidance above contain forward-looking
statements that involve risks and uncertainties. Such forward-looking
statements generally can be identified by the use of forward-looking
terminology such as “may,” “will,” “expect,” “intend,” “could,”
“estimate,” “should,” “anticipate,” ”believe,” or “confident,” or the
negative thereof or variations thereon or similar terminology. The
Company believes that the expectations reflected in such forward-looking
statements are accurate. However, there can be no assurance that such
expectations will occur. The Company's actual future performance could
differ materially from such statements. Factors that could cause or
contribute to such differences include, but are not limited to: the
general strength of the economy and other economic conditions affecting
consumer preferences and spending; factors affecting the disposable
income available to the Company's current and potential customers;
changes in the unemployment rate; uncertainties concerning the
completion of the Company’s review of its strategic and financial
alternatives; difficulties encountered in improving the financial and
operational performance of the Company's business segments; the
Company’s ability to refinance its senior credit facility expiring in
early 2019 on favorable terms, if at all; risks associated with pricing
changes and strategies being deployed in the Company's businesses; the
Company's ability to realize additional benefits from its initiatives
regarding cost-savings and other EBITDA enhancements, efficiencies and
working capital improvements; the Company's ability to execute its
franchise strategy; failure to manage the Company's store labor and
other store expenses; the Company’s ability to successfully execute its
strategic initiatives; disruptions caused by the operation of the
Company's store information management system; the Company's transition
to more-readily scalable, “cloud-based” solutions; the Company's ability
to develop and successfully implement digital or E-commerce
capabilities, including mobile applications and enhancements to its
unmanned platform for its Acceptance NOW segment; disruptions in the
Company's supply chain; limitations of, or disruptions in, the Company's
distribution network, and the impact, effects and results of the changes
the Company has made and is making to its distribution methods; rapid
inflation or deflation in the prices of the Company's products; the
Company's ability to execute and the effectiveness of a store
consolidation, including the Company's ability to retain the revenue
from customer accounts merged into another store location as a result of
a store consolidation; the Company's available cash flow; the Company's
ability to identify and successfully market products and services that
appeal to its customer demographic; consumer preferences and perceptions
of the Company's brand; the Company's ability to control costs and
increase profitability; the Company's ability to retain the revenue
associated with acquired customer accounts and enhance the performance
of acquired stores; the Company's ability to enter into new and collect
on its rental or lease purchase agreements; the passage of legislation
adversely affecting the Rent-to-Own industry; the Company's compliance
with applicable statutes or regulations governing its transactions;
changes in interest rates; adverse changes in the economic conditions of
the industries, countries or markets that the Company serves;
information technology and data security costs; the impact of any
breaches in data security or other disturbances to the Company's
information technology and other networks and the Company's ability to
protect the integrity and security of individually identifiable data of
its customers and employees; changes in the Company's stock price, the
number of shares of common stock that it may or may not repurchase, and
the Company’s dividend policy and any changes thereto, if any; changes
in estimates relating to self-insurance liabilities and income tax and
litigation reserves; changes in the Company's effective tax rate;
fluctuations in foreign currency exchange rates; the Company's ability
to maintain an effective system of internal controls; the resolution of
the Company's litigation; and the other risks detailed from time to time
in the Company's SEC reports, including but not limited to, its Annual
Report on Form 10-K for the year ended December 31, 2017 and its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2018. You
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Except as required by law, the Company is not obligated to publicly
release any revisions to these forward-looking statements to reflect the
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.

The advertised transaction is a rental-purchase agreement (rent-to-own agreement, consumer rental-purchase agreement or a lease/lease-purchase agreement, depending on your state). You will not own the merchandise until the total amount necessary to acquire ownership is paid in full or you exercise your early purchase option (“EPO”). Ownership is optional. MA and RI consumers: after the first 90 days, you may purchase the merchandise for 80% of the remaining Total Cost, plus applicable sales tax. No credit needed” does not mean or imply that no inquiry will be made of credit history or creditworthiness. We may check past transactional history, but no established FICO score or credit history is necessary. Rental agreement requires, at minimum, verification of residence, income, and 4 personal references. Product availability and pricing may vary by store. Advertised offers good while supplies last and cannot be combined together or with any other promotions. See Store Manager for complete details. Consulta con el Gerente de la Tienda para los detalles completos.

*Advertised rates begin 1/6/17 and end 1/22/17. “Anything in the store $20 for the first 3 weeks” offer is only valid on a new agreement entered on 1/6/17 – 1/22/17. Customers eligible for this offer will pay $20 to rent the selected merchandise for the first three weeks. After the first three weeks, regular rental rates will apply. Regular rate, term and total cost vary by item selected. Offer good while supplies last and cannot be combined with any other promotion. The “Total Price” does not include applicable taxes, optional fees and other charges (such as late charges) you may incur. Prices not valid outside U.S. Offer not valid online.

**Participating locations only. Delivery and set-up are included, and RAC services and maintains the merchandise while on rent (or in NJ, for duration stated on agreement) set-up does not include connection of gas appliances. For model upgrades, simply return the product you are currently renting and open a new agreement for another model. You can return your product and freeze your payments. To restart an agreement on a returned product, Rent-A-Center will retain your payment records for two years. Thereafter, simply bring in your last payment receipt for reinstatement. Beats, Beats by Dr. Dre and the circle b logo are registered trade and service marks of Beats Electronics, LLC. Galaxy J7 is a registered trademark of Samsung. LG and LG G5 logo are trademarks of LG. PS4 logo is a trademark of Sony and Xbox One logo is a trademark of Microsoft. Intel, the Intel logo, the Intel Inside logo and Intel Core are trademarks of Intel Corporation or its subsidiaries in the U.S. and/or other countries. Other trademarks, registered trademarks and/or service marks, indicated or otherwise, are the properties of their respective owners.

The advertised transaction is a rental-purchase agreement (rent-to-own agreement, consumer rental-purchase agreement or a lease/lease-purchase agreement, depending on your state). You will not own the merchandise until the total amount necessary to acquire ownership is paid in full or you exercise your early purchase option (“EPO”). Ownership is optional. MA and RI consumers: after the first 90 days, you may purchase the merchandise for 80% of the remaining Total Cost, plus applicable sales tax. No credit needed” does not mean or imply that no inquiry will be made of credit history or creditworthiness. We may check past transactional history, but no established FICO score or credit history is necessary. Rental agreement requires, at minimum, verification of residence, income, and 4 personal references. Product availability and pricing may vary by store. Advertised offers good while supplies last and cannot be combined together or with any other promotions. See Store Manager for complete details. Consulta con el Gerente de la Tienda para los detalles completos.

*Advertised rates begin 1/6/17 and end 1/22/17. “Anything in the store $20 for the first 3 weeks” offer is only valid on a new agreement entered on 1/6/17 – 1/22/17. Customers eligible for this offer will pay $20 to rent the selected merchandise for the first three weeks. After the first three weeks, regular rental rates will apply. Regular rate, term and total cost vary by item selected. Offer good while supplies last and cannot be combined with any other promotion. The “Total Price” does not include applicable taxes, optional fees and other charges (such as late charges) you may incur. Prices not valid outside U.S. Offer not valid online.

**Participating locations only. Delivery and set-up are included, and RAC services and maintains the merchandise while on rent (or in NJ, for duration stated on agreement) set-up does not include connection of gas appliances. For model upgrades, simply return the product you are currently renting and open a new agreement for another model. You can return your product and freeze your payments. To restart an agreement on a returned product, Rent-A-Center will retain your payment records for two years. Thereafter, simply bring in your last payment receipt for reinstatement. Beats, Beats by Dr. Dre and the circle b logo are registered trade and service marks of Beats Electronics, LLC. Galaxy J7 is a registered trademark of Samsung. LG and LG G5 logo are trademarks of LG. PS4 logo is a trademark of Sony and Xbox One logo is a trademark of Microsoft. Intel, the Intel logo, the Intel Inside logo and Intel Core are trademarks of Intel Corporation or its subsidiaries in the U.S. and/or other countries. Other trademarks, registered trademarks and/or service marks, indicated or otherwise, are the properties of their respective owners.